GameStop issues short seller: ‘We respect market rationality’

Short seller Citron Research has abandoned short positions in the gaming retailer and MemStop, according to the company. He managed to accumulate $4 billion in cash. Among the influential revival of the stock Roaring Kitty (by Keith Gill), by an acerbic tweet Wednesday morning.

Citron made it clear that he did not close the position because he now has a harsh view of the game company. Instead, the company “has $4 billion in the bank [GameStop has] Enough runway to please their cult-like shareholders.

Despite an $11 per share discount from investment firm Wedbush on Wednesday, Citron said it “respects the irrationality of the market.”

The tweet ended with a jab Roaring Kitty's latest live streamThe first in three years, he called it “an insult to the capital markets”.

Shares of GME surged late last week, climbing to nearly $47 a share, as word spread that Roro Kitty was back. After many years out of sight of the light. Shares tumbled earlier this week, falling below $25 before reversing course and rising to $33.50 early Wednesday. As of this writing, the stock has dropped again to $28.69.

The reason for the mid-week increase may be because GameStop announced it was closing yesterday. Equal supply program in the marketIn doing so, he sold 75 million shares for gross proceeds of $2.1 billion.

Citroen's exit comes less than two weeks after it took a new short position in the stock. “It's exciting to be back in the fire,” company founder Andrew Graf told Reuters last week.

“For the first time, three-and-a-half years ago (Game Stop) was a cultural event, and this has just played out,” Graf told the news agency. “

Citron held a short position in GME shares in 2021 as retail traders issued short squeezes to pressure institutional investors. The short seller is left taking a total loss.

In today's news that Citron pulled out his latest bet with Game Stop, Roaring Kitty won a second round against the short seller.

Edited by Ryan Ozawa.